Equity is one of the most powerful tools in property ownership. It represents the difference between your property’s value and the amount you owe on your loan. In 2025, many homeowners are sitting on significant equity without realising its potential. Used wisely, equity can help you grow wealth and achieve financial goals.

What is equity?
If your home is worth $800,000 and your loan balance is $400,000, your equity is $400,000. Lenders typically allow you to borrow up to 80 percent of the property’s value, which means you may be able to access $240,000.

Ways to use equity

• Investment property: Use equity as a deposit for your next property.

• Renovations: Fund improvements that increase your home’s value.

• Debt consolidation: Roll high-interest debts like credit cards into your mortgage for lower repayments.

• Business funding: Access capital for growth without taking out unsecured loans.

The risks of misusing equity
Equity is not free money. Increasing your loan balance means higher repayments. If property values fall, your available equity decreases. That is why it is critical to have a clear plan before drawing on equity.

How lenders assess equity
Lenders look at:

• Current property valuation.

• Your income and repayment capacity.

• Existing debts and liabilities.

• Your credit history.

At MAW Money, we run the numbers for you and show you the safest and smartest way to access equity.